Fowl play in import claims
Much ink and newsprint has been used of late regarding the woes of the domestic poultry industry, with much of the blame laid at the feet of poultry importers. But let us put emotion aside for a moment and consider only the facts.
The product causing all the controversy is bone-in chicken cuts. We read that 30,000 tonnes is being imported monthly. This is a 50% exaggeration. The official import figure for the 12-month period to December 31 2016 was 239,553 tonnes, which is just less than 20,000 tonnes per month. Total chicken imports for this period were 333,910 tonnes. This includes bone-in and boneless cuts, whole birds, offal and carcasses.
As a percentage of local consumption, which includes the generous brine content of South African-produced chicken, this represents about 14%. Yet it is continuously reported that imported chicken threatens the very existence of the local poultry industry.
This blatantly exaggerated statement brings to mind two thoughts.
First, why would investment experts and share pundits keep recommending the major companies in this “mortally wounded industry” as a buy? This is simply because they know the hiatus, caused mainly by high maize prices, is drought-related and only temporary. They know that the industry’s survival is not under any serious threat.
Second, are certain parties guilty of spreading “fake news” with “alternative facts”?
David Wolpert
CEO, Association of Meat Importers and Exporters of SA